The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National
The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National
The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National
The Microsoft AI Tour in Dubai. The UAE is making AI an official advisory participant in government. Antonie Robertson/The National


The UAE has much to gain from an AI-enabled government adviser


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July 03, 2025

We will soon live in the artificial general intelligence age. What you do with that information will determine your place in history.

Last week, the UAE announced that a National Artificial Intelligence System would become a non-voting member of all federal and government company boards – and an advisory member of the Council of Ministers starting next year.

The world should take notice.

This isn’t just a headline-grabbing initiative or a clever nod to the AI hype cycle. It is a serious declaration: governance itself is being reimagined. Intelligence – both human and artificial – will now sit side by side at the decision-making table.

Once again, the UAE isn’t waiting for the future to arrive – it is shaping it.

This move comes as the OECD’s latest Reimagining Government report makes a powerful case: that public sectors can no longer function as slow-moving regulators. They must become shapers of behaviour, markets and futures.

While most of the world debates AI’s ethical dilemmas or fears job displacement, the UAE is pivoting boldly towards the opportunity – transforming AI from a back-office assistant into a strategic actor in policy and decision-making.

The UAE is transforming AI from a back-office assistant into a strategic actor in policy and decision-making.

Though it began in academic labs in the 1950s, AI has matured exponentially in the past three years.

Today’s systems can analyse billions of data points, detect anomalies in financial flows, simulate geopolitical risk and model climate shocks in real time. This is more than automation as we progress fast towards AGI – systems capable of human-level reasoning across diverse domains. These systems don’t just respond; they think, adapt and generate original insights, and – according to OpenAI’s Sam Altman and Anthropic’s Dario Amodei – AGI could be with us in as little as two years.

If you are sitting in government, prepare for this: an AGI system tasked with revising a national budget could process 30 years of fiscal policy, the current citizen sentiment, environmental data, infrastructure needs and long-term equity goals – then simulate the impact of dozens of policy decisions. Any of this could be done in a matter of hours, not months.

The private sector is already embracing AI-powered leadership. Salesforce, for example, reports that AI performs up to 50 per cent of its work with 93 per cent accuracy. Chinese gaming firm NetDragon Websoft appointed an AI chief executive, seeing a 10 per cent stock increase. In Poland, Dictador placed an AI executive in charge of strategy. These are no longer public relations stunts – they are the front edge of a new executive model.

But the UAE is taking this one step further: it is nationalising the model. Institutionalising it. Making AI an official advisory participant in the heart of government.

The AI entity will not vote or replace ministers. Instead, it will serve as a strategic co-pilot: scanning, simulating and synthesising complex variables to support sharper, faster and more transparent decisions. This is the embodiment of what the OECD calls the shift from “reactive bureaucracy” to anticipatory governance.

AI’s involvement at board level is just the beginning. Ministries of health will use it to model pandemic responses. Trade agencies will forecast demand shifts before they happen. Environmental teams will design adaptive strategies based on real-time data.

And this entire transformation is happening within a sovereign, ethical and encrypted framework, aligning with the UAE’s AI governance standards – building public trust in a moment when “black box” algorithms threaten transparency.

This is critical, as the OECD emphasises that agility is the new legitimacy. In an age of rapid shocks – climate, health, geopolitical – slow governments lose trust. The UAE’s model, by contrast, offers real-time simulation, data-informed decisions and transparency by design.

But this leap forward demands more than infrastructure – it demands people. The OECD notes the importance of system thinking, digital capacity and collaborative leadership. These are not optional skills. They are core to the government’s relevance in the AI age. That means upskilling every tier of public service. Not just AI engineers, but policy designers, frontline officers, educators and regulators. Everyone must learn to work with, not just around, machines.

In adopting AI in the form, the UAE offers a practical answer to one of the OECD’s boldest provocations: what if government itself became a platform for intelligence – human and artificial – to co-create the future?

And yet, as the OECD warns, the future is already here, but it’s not evenly distributed. While countries such as the UAE are sprinting forward, others risk falling behind – locked in outdated bureaucratic routines and legacy decision-making. Some countries will hesitate. Some will worry about legitimacy, ethics, or optics. But others will look at the UAE and say: this is the new blueprint – AI will not replace human leadership. But it will augment it, challenge it and sharpen it.

In a world of rising complexity, that might just be our greatest advantage.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

Updated: July 04, 2025, 4:58 AM